IANS | 13 Jul, 2012
Brazil's central bank cut its benchmark Selic interest rate Wednesday by
half a percentage point to a record low of 8 percent in the eighth
consecutive rate cut this year.
The country is currently running a
low risk of inflation, allowing for room for more rate easing, said the
Monetary Policy Committee of Brazil, which has cut the basic interest
rate by 3 percentage points since the beginning of the year, reported
Xinhua.
The reduction came as expected by the market and at a
time when the government is struggling to revive the country's flagging
economy.
Brazil's industrial output fell 1.8 percent last year, prompting expectations of a further cut of 0.75 percentage points.
The
government has rolled out favourable policies, including lower taxes,
cheaper credit and rate cuts to stimulate the domestic economy.
